Anyone who has shopped in the San Diego housing market lately knows the challenges: with inventory at rock bottom and the popularity of homes in San Diego county only rising, prices have gone sky-high and many properties receive multiple offers over asking price.
While increasing interest rates are hoped to calm the market a bit and curb the runaway price increases, the truth is that the data from top agents around the country shows that cash offers are still a dominant force in the United States in general and in the San Diego market in particular. By understanding the appeal of a cash offer, homebuyers can gain insight into what it will take to get the home they are looking for in San Diego.
Why are cash offers so valued?
In a typical housing market, homes that went under contract with a mortgage loan needed would have a few hurdles to get from contract to closing. These often included a home inspection that didn’t reveal major issues, as well as an appraiser that helped the lender understand whether the home’s value matched the price that the buyer was offering to pay. Depending on what was revealed by the inspector or appraiser, the contract could fall through.
In San Diego’s current hot seller’s market, cash offers allow sellers to skip these steps, provided the buyer isn’t making their offer contingent on a home inspection. Cash offers aren’t dependent on a lender to evaluate the property’s value independently through an appraiser, so they can often close quickly and with very little insecurity.
With median home prices in San Diego County continuing to rise, not everyone has the assets to create a cash offer, but many people still need to find housing and want to be owners. What can they do?
How can mortgage offers stand out in a competitive market?
Some of the factors that a buyer who needs a mortgage loan can control include who they work with as an agent as well as how they structure their offer. A great agent in San Diego is going to be paying attention at all times to the kinds of homes that are coming on the market that fit your needs, and they can get you prepared so that, when the right home comes along, you aren’t scrambling to get the offer ready. The offer itself can also make a great deal of difference: by offering over asking price, you can place yourself in the ranks of other competitive offers, and things like a great down payment, a quick time to closing, and an offer to pay appraisal gaps in cash can all have a positive impact on your chances.
Managing expectations is key to finding the right San Diego home
A great agent has another valuable trait: patience. Your agent can help you understand if you’re likely to find the house you want for the price you can afford within the timeframe you’re considering, or if renting while you house-hunt makes more sense.
They will help you understand how quickly you need to evaluate and offer on homes to be competitive, and they will reassure you that many, many house hunters are currently experiencing the disappointment of an offer turned down by a seller. Not getting the contract even in the first few offers is a reality, and a great real estate agent will help you work through it and prepare for